UHT and cap raise

As this article spells out, Murray Goulburn troubles has presented big opportunities to FNP.
Like others on this forum I too was surprised by latest cap raise.  But with major changes in the dairy space, FNP needed to move fast and I figure they see other changes and opportunities around the corner.
I'll keep my faith in management.
Lets see what the market thinks tomorrow..

Freedom Foods brings Australia’s Own UHT milk to supermarkets

Freedom Foods Group chief executive Rory Macleod. Picture: Stuart McEvoy

• The Australian
• 12:00AM March 15, 2018

Low-key health food and long-life dairy processor Freedom Foods is moving into the highly competitive Australian milk market, with its Australia’s Own brand of UHT milk to appear in Coles and Woolworths from May.
ASX-listed Freedom Foods, which reached the $1 billion capitalisation mark last year, has moved to secure space in major retailers for its own brands following the demise over the past two years of once dominant dairy processor Murray Goulburn.
Freedom Foods has boosted its purchase of fresh milk from farmers from 85 million litres in June last year to 250 million by this mid-year, with its Shepparton processing plant now undergoing a $55 million-$60m expansion to cope with the higher volumes.
Freedom Foods chief executive Rory Macleod said the decision by Murray Goulburn to cease production of large volumes of its Devondale ultra-heat-treated milk and to discontinue its Devondale UHT cream as its milk supply slumped created a market opportunity for Freedom Foods in Australia.
The big supermarkets are also nervous that the coming sale of Murray Goulburn to Canadian giant Saputo may see the well-known Devondale brands of UHT milk disappear and their access to retail alternatives dry up.
Freedom is a major supplier of UHT and long-life milk products to China and Southeast Asia but has only had a presence in supermarkets and major retailers in Australia through its numerous lines of cereal, health foods and alternative non-dairy milks — also sold under the Australia’s Own label — such as soy, coconut, rice and almond milks.
“There is a great opportunity now for a new consistent brand across the whole dairy range, and we want to be there,” Mr Macleod said yesterday. “It’s no secret there are challenges around Devondale’s survival; us taking up the UHT space (vacated by MG) and this aligns so well with what we are already doing with our exports to China and Southeast Asia.”
Mr Macleod estimated that the company’s new supermarket milk deal would involve at least 30 million litres a year. All of Freedom’s milk is supplied by farmers in northern Victoria and NSW’s Riverina around Finley, with the company locking in long-term contracts with some farmers as its moves towards a processing capacity of 300-400 million litre a year at its key Shepparton plant.
Some farmers will supply milk containing only a2 protein, with Mr Macleod determined to launch an Australia’s Own a2 UHT milk this year.
Other Australia’s Own milks available in supermarkets from May will include low-fat, high-protein and full-cream UHT milks, UHT cream and yoghurts, and a lactose-free milk.
Rory Macleod is a panellist at this year’s Global Food Forum, where he will be discussing the rise of health foods.